Derick Boston CPA

07/05/2022

IRS Increases Mileage Rate for Remainder of 2022

The Internal Revenue Service announced on June 9, 2022 an increase in the optional standard milage rate for the last six months of 2022. Business travel will be 62.5 cents per mile, up 4 cents from the effective rate at the start of the year.

Here is the breakdown:
Purpose: Business Rate 58.5 cents per mile 1/1 to 6/30/2022
Rate 62.5 cents per mile 7/1 to 12/31/2022

Source: IRS Notice IR-2022-124

11/25/2020

Deducting Expenses Paid Out of Payroll Protection Program (PPP) Loans

The IRS has issued two Revenue Rulings pertaining to PPP Loan received by taxpayers.

Revenue Ruling 2020-27 provides that taxpayer's who received PPP Loan in 2020 and paid or incurred certain otherwise deductible expenses such as payroll, interest, rent, and utilities and expect their loan to be forgiven shall excluded from gross income and therefore disallowed as a business deduction.

Revenue Ruling 2020-51 provides a safe harbor that allows a taxpayer who received PPP Loan to claim a business tax deduction under certain conditions specifically the expenses are paid during 2020 tax year, taxpayer expects the PPP Loan to be forgiven from repayment after the 2020 tax year, and the in the subsequent tax year the taxpayer's request for forgiveness is denied.

Congress and the IRS are still debating whether expenses funded by forgiven PPP loan deductible or not. Stay tuned.

Give me a call, Derick Boston, CPA, FL. License No. 19889, with your tax matters at office number is 941-304-3257 or email [email protected]. My website is www.dbostoncpa.com.

Free initial consultation.

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07/30/2020

Independent Contractor (Self-Employed) or Employee?

Business owners are required to determine whether individuals providing services on their behalf are employees or independent contractors.

Business owner must withhold income taxes, withhold and pay Social Security and Medicare Taxes, and pay unemployment tax on wages paid to employees.

On the other hand, business owners do not generally have to withhold or pay any taxes on payments to independent self-employed contractors. Contractors are responsible for paying their own self-employment taxes and quarterly estimated tax payments to the IRS.

A couple of key factors to consider are:
1. Degree of Control. For example, do you provide your own supplies, tools, help, and equipment to do the job? Does the business owner oversee the work and how it is done?
2. Independence. For example, will the relationship continue? Is there a written engagement letter or contract or employee type benefits?
Source: IRS.gov.

For further details, I have included a link below from the IRS website.

Derick Boston, CPA, FL. License No. 19889
Office Number 941-304-3257
Email [email protected]
Website www.dbostoncpa.com

Free Initial Consultation

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

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07/20/2020

Safety First Small Business Grant Program

Applications for Safety First Small Business Grant Program (Manatee County) will be accepted until Friday July 24 or until 500 applications have been received.

The link below has been provided for your assistance and further details. Applicants must apply online (no paper applications will be accepted).

Grants of up to $5,000 will be issued to eligible applicants. The funds can be for re-opening sanitation and safety supplies, including personal protective equipment(PPE); signage; marketing; outdoor seating; inventory and materials; equipment and supplies; and software.

Note: The grant is made to those business owners who have Not received any prior aid like for example Paycheck Protection Program(PPP) or Small Business Economic Injury Disaster Loan Program(EIDL).

Source: www.MyManatee.org.

Derick Boston, CPA, FL. License No. 19889
Office Number 941-304-3257
Email: [email protected]
Webpage: www.dbostoncpa.com

https://www.mymanatee.org/departments/redevelopment___economic_opportunity/economic_development/recovermanatee/safety_first_small_business_grant_program

Applications for the Safety First Small Business Grant Program will be accepted until July 24 or until 500 applications have been received. No paper applications will be accepted. Please review eligibility requirements and FAQs [preguntas frecuentes en español] before applying.

07/12/2020

Tax Filing and Payment Deadline (Wednesday) July 15, 2020

The Treasury Department and Internal Revenue Service extended the income tax filing due date automatically from April 15 to July 15, 2020.

Individual taxpayers who need additional time beyond July 15 deadline, can request a filing extension by timely filing Federal Form 4868 through their tax professional, tax software, or using Free File link on IRS.gov. (Source: IRS.gov)

Remember:
You can be granted an extension of time to file your tax return, not an extension of time to pay any taxes owed.
All Federal taxes are due and required to be paid by July 15, 2020.

I am here for you. If you have been putting off filing your taxes and need help, give me a call Derick Boston, CPA, FL. Licensed No. 19889.
Office: 941-304-3257
Email: [email protected]
Website: www.dbostoncpa.com

Free Initial Consultation

Welcome to our website! This website exists to provide clients and potential clients with information concerning our firm and our unique, low-pressur...

07/06/2020

Paycheck Checkup- Everyone Should Check Their Withholding

We are six months into the year, and now is a good time to assess your tax withholdings.

A Paycheck Checkup can help you see if you're withholding the right amount of tax from your paycheck.

Too little tax withholdings out of your paycheck or earnings could mean an unexpected tax bill or penalty. (Source: www.irs.gov/paycheck-checkup).

The link below can help you get started and assist you in asking the right questions.

I am here to help you and your business succeed. I can be reached at 941-304-3257 or email [email protected] or website www.dbostoncpa.com.

Derick Boston, CPA, FL. License No. 19889.

https://www.irs.gov/individuals/tax-withholding-estimator

Welcome to our website! This website exists to provide clients and potential clients with information concerning our firm and our unique, low-pressur...

06/26/2020

Paycheck Protection Program(PPP) 5 days Remaining

Applications for the Paycheck Protection Program will be accepted through Tuesday June 30, 2020.

Call or visit your local banker today to request an application and obtain all the details.

There is a provision in the law where the borrower's full loan proceeds can possibly be deferred and subsequently forgiven assuming the money is spent in a timely manner for approved payroll cost and SBA defined utilities.

I am here to help you and your business succeed.

Derick Boston, CPA, FL. License No. 19889, office phone 941-304-3257; email [email protected]; website www.dbostoncpa.com

Free Initial Consultation

06/20/2020

Tips to Help Your Business Start Out Right

In the wake of COVID-19 small business funding, many people discovered through the banking application process or online literature that they were not prepared or eligible to received some of the millions of dollars allocated out by the federal government.

Here are some ways to help people who are doing business to be in a position to properly apply and compete for bank and government approved loans.

1. Go to the IRS website and register your business with the Federal government.
2. Contact your local city or county agency or go online to register your business for occupational license.
3. Register your business Fictitious Name and have it published in the local paper.
4. Contact the Business and Professional Regulations to inquire about any State business registration requirements.
5. Find a local bank of your choice and open up a business bank account in the name of your business.
6. Obtain proper insurance i.e. building rent, bonding.
7. Talk to and consider engaging a competent bookkeeper or licensed IRS Enrolled Agent or CPA to
(a) assist you work with your attorney in choosing your
business entity i.e. sole proprietor; partnership, S-Corp
(b) set up your business records and payroll in
accordance with federal and state acceptable
accounting practices and regulations, and
(c) prepare monthly, quarterly or semi-monthly business
financial statements to: track income and expenses,
complete estimated tax payments and year end tax
returns, and provide to your lenders as support
when seeking loans.

I am here to help you and your business succeed. Call me Derick Boston, CPA, FL. License No. 19889, at office 941-304-3257; email [email protected]; or visit my website www.dbostoncpa.com.

Free Initial Consultation

06/04/2020

Business Bank Account

It is a good idea for business owners to have a combined business checking-saving account specifically in the name of their business.

When business owners maintain a separate bank account for business transactions, it allows for proper tracking of income and expenses. In addition, when seeking loans, bankers generally frown on business owners who can not prove the source of written deposits and checks.

Moreover, business owners that make the decision to commingle business and personal items in a personal husband and wife named bank account are exposing themselves to potential risk. For example, under these circumstances, the IRS may automatically assume all deposits in the account are taxable income resulting in possible added income tax due plus penalties and interest.

I am here to help you and your business be successful. Give me Derick Boston, CPA, FL. License No. 19889 a call at 941-304-3257 or email [email protected] or message me via my website www.dbostoncpa.com.

Free initial consultation

04/29/2020

Business Expense Documentation

A cancelled check, Paypal reference, bank statement or debit card entry may not be enough evidence to withstand an IRS examination.

For example, many office supply stores sell both personal and business goods. Your documentation should include a related business purpose.

The same goes for meetings including meals and travel cost. Courts have ruled that (beyond business hotel receipts, agendas, and travel logs) the Business Purpose of the meeting or travel must be documented. For instance, record who was present at the meeting and business issues discussed.

The IRS may challenge a vague descriptions of business purpose such as "meeting or "conference".

For your tax and business bookkeeping/accounting needs, contact me Derick Boston, CPA, office 941-304-3257; email [email protected]; website www.dbostoncpa.com.

Active CPA License No. 19889 to practice in the state of Florida since July 28, 1988.

Free initial consultation.

03/19/2020

IRS Coronavirus Disease 2019 Pandemic Guidance Postpones Tax Payment Not Tax Filing Requirements

The IRS addressed Tax Payments Relief.

You are still required to file your Federal 1040 income tax return on time by the required due date of April 15, 2020. Even with extensions, the IRS must be notified in writing of your intentions by April 15 as well.

IRS recently issued Notice 2020-17 that provides emergency relief. Here are a summary of a few key points:

1. For an Affected Taxpayer, the due date for making Federal income tax payments including tax payments on self-employed income and estimated tax payments due April 15, 2020 is postponed to July 15, 2020.

2. The The Applicable Postponed Payment Amount is the same for single individual and for married individuals filing a joint return.

3. The calculation of interest, penalty, and failure to pay will be disregarded during the time period April 15, 2020 to July 15, 2020.

4. In both instances, the Applicable Postponed Payment Amount is up to $1,000,000.

For your tax needs, give me Derick Boston, CPA, (FL. License No. 19889) a call at my office 941-304-3257; email [email protected]; or visit my webpage www.dbostoncpa.com.

Free Initial Consultation